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The Dance Of The Coupon Code (And how to stop dancing)

Once upon a time in the land of Direct-To-Consumer (DTC) brands, there lurked a mischievous little creature named Coupon Code. With its irresistible charm and flashy discounts, it wooed shoppers left and right.

But little did the DTC brands know, that every time Coupon Code flashed its dazzling percentages, a tiny piece of their profit vanished into thin air! Now, they're on a wild goose chase, trying to tame this cheeky critter before their coffers run dry.

Beware, dear brands, of the alluring dance of the Coupon Code! 😂🛍️🎟️

10 Things You Can Do To Drive DTC Purchases Instead Of Coupon Codes

In the mystical realm of Direct-To-Consumer commerce, brands often find themselves at a crossroads.

While the allure of the Coupon Code is strong, wise brands know there are other spells and enchantments to captivate their audience. Before we embark on this magical journey, let's set the stage.

Imagine a world where customers are not just lured by discounts, but by the very essence and experience a brand offers.

Ready your wands and open your spellbooks, for here are ten bewitching ways DTC brands can drive business without the age-old trickery of coupon codes! 🌌📜🔮

1. Magical Store Credit: Instead of the sly Coupon Code, offer a sprinkle of store credit! It's like a treasure chest waiting to be unlocked by loyal customers on their next adventure.

2. Cash Back Charms: Wave your wand and reward your shoppers with cash back! Every purchase becomes a golden opportunity to earn and return.

3. Loyalty Potion Programs: Brew a concoction that rewards repeat customers. The more they sip, the more enchanted they become with your brand.

4. Exclusive Access Pass: Roll out the red carpet to a secret realm where only the most loyal subjects get a peek at new launches and limited editions.

5. Mystery Box Quests: Surprise and delight with boxes filled with unknown treasures. The thrill of the unknown keeps shoppers coming back for more.

6. Referral Scrolls: Empower your customers with magical scrolls that reward them for bringing friends into your kingdom.

7. Storybook Content: Weave tales about your products, making them legendary. Let customers be the heroes of these stories.

8. Subscription Spell: Bind your customers with a monthly spell of curated goods delivered straight to their doorsteps.

9. Interactive Challenges: Host quests and challenges, where customers can earn points and badges, turning shopping into a grand adventure.

10. Personalized Pixie Recommendations: Use little pixies (aka algorithms) to suggest products tailored to each customer, making them feel like royalty.

New Podcast | Ep 478: Coupon Codes Are Bankrupting Your DTC Brand - But There’s A Fix with Oren Charnoff, Fondue

Listen here: https://bit.ly/44fmj8Q

Traditional discounts and coupon codes can be problematic for brands. Enter cashback offers, a game-changer for e-commerce. This new system allows shoppers to make full-price purchases and then claim a discount afterward, either in cash or store credit. Brands can discount more aggressively and still be profitable, while shoppers who choose store credit show they are not solely driven by price. This strategy adds margin and leads to a more frequent and profitable first purchase.

In this episode, Jordan West and Oren Charnoff, from Fondue uncover a new trend in cashback offers for shoppers and how it can be more profitable for retailers compared to traditional discounts.

Listen and learn in this episode!

Key takeaways from this episode:

• Some founders benefit from building in public, growing their audience

• Pop-ups now offer cashback instead of just discounts

• Some shoppers don't claim the discount, while others choose between cash or site credit

• About three-quarters of shoppers claim nothing or take gift cards, which is more profitable

• Cashbacks prevent leakage or margin bleeding from coupon codes

• Cashback system more profitable for retailers

• Brands can set how long site credits are available

• Shoppers have 6 months to claim cashback, but most claim it within 11 minutes or 2 days

• Average liability period for cashback is around two weeks

• Coupon codes are problematic as the only way to offer discounts

• Shoppers connect with brands for reasons beyond price

• Cashback offers an alternative by allowing discounts after a full-price purchase

• Brands can discount more aggressively and still be profitable through cashback program

• Founder-led sales attract brands and contribute to success

• People care about people and like to contribute to their success

• Being a person can have a greater impact than being a company

• People follow individuals on social media, not necessarily companies.

Recommended App:

Fireflies: https://app.fireflies.ai/

Recommended Link:

Fondue: https://www.getfondue.com/

Postscript: https://postscript.io/

Today’s Guest:

Oren Charnoff is Co-founder and CEO at Fondue, a Shopify app that is helping E-commerce brands grow profitably. They work with the entire range of ecommerce from small DTC brands to publicly traded companies, and from electric scooters to astrology candles. Prior to starting Fondue, Oren was on the founding team at Hanaco Ventures - a now $1.5b venture fund investing in early and growth-stage tech companies.

Connect and learn more about Oren and Fondue here:

Website: https://www.getfondue.com/

LinkedIn: https://www.linkedin.com/in/orencharnoff/

X: https://twitter.com/OCharnoff

Get 5 Offers for 2 Products (10 in total) along with 10 highly engaging tried and true creatives, 30 captivating headlines, descriptions, and ad texts sent to you for only $99. Go to https://www.upgrowthcommerce.com/offer and order now - this offer is only available for a limited time.

We love our podcast community and listeners so much that we have decided to offer a free eCommerce Growth Plan for your brand! To learn more and how we can help, click here: upgrowthcommerce.com/grow

Join our community and connect with other eCommerce brand owners and marketers! https://www.facebook.com/groups/secretstoscalingpodcast

Recent Release Podcast: 

• Ep 477: 50% Reduction in CPA? Shopify Audiences 2.0

• Ep 476: Everything we knew about CRO was wrong!

• Ep 475: The 80/20 Rule of Ecommerce: How Focusing on Checkout Can Transform Your Business

Tool of the Week: Motion AI | AI Calendar App

There are now
13 months in a year.

Motion increases productivity by 137%. With automation and AI that intelligently plan your day, schedule meetings, and build the perfect to-do list.

ChatGPT prompt for the week for marketers:

Unlock the Secrets of E-commerce Success Today:

Have you ever wondered how some people seem to effortlessly build successful e-commerce brands, while others are left struggling? Well, wonder no more.

Ben Leonard, the anti-guru behind the multi-million-dollar brand, Beast Gear, is sharing the secrets to his e-commerce success. His new book, "Quit Stalling And Build Your Brand. You Don't Need an MBA to crush it in E-commerce," is your roadmap to e-commerce success. Whether you are just starting, or you're going pretty well but need some extra oomph…

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Don't miss this golden opportunity. Join the waitlist and unlock your potential today.

Jordan West, CEO and Founder of upGrowth Commerce, a digital marketing brand. He started in marketing at 22 when he bought a Taco Del Mar chain restaurant. The learning curve was large but after 5 years he had tripled the sales at the restaurant with creative marketing tactics.

After selling the store Jordan and his wife grew their children’s clothing company Little & Lively from a small at-home operation to one of the “top ten baby brands in Canada” with advanced digital marketing techniques. Jordan’s business passion is helping e-commerce brands grow exponentially.

Fun Fact: For many years, Jordan was a part-time paramedic and loved helping people on their “worst day”